Making an income without even lifting a finger is something that we all want to do. And that is exactly what passive income is. While you will need to put in the hard work and graft at the beginning, once you have done the initial setup, you can be earning money as you sleep. In a year such as 2020 which has seen more job losses and pay cuts than ever before, there is even more reason to earn extra money where you can.
Why is Passive Income so great?
Passive income gives us something that is extremely hard to come by in excess – time. Instead of slaving away at a second job, passive income means we can earn steady, additional income without having to do too much. You are free from the constraints of a 9-5 and can live the flexibility of running your own business, able to go away if and when you want or avoid missing out on important family moments.
It is also a good way to reduce your stress and anxiety, as you know you can pay your bills. If you were to suddenly be made redundant from your job, you still have some source of income coming in, so you aren’t left completely out in the lurch. Passive income also allows you to follow your heart and pursue what you really love.
When your passive income is outpacing your debt, you are free to get involved in the things that really matter to you. It could be that you’ve always wanted to start a new career but couldn’t afford a pay cut before, or that you want to travel the world. No matter your reason, passive income can help you to achieve this.
If this sounds like something you want to do, then it is time to look at how to make a passive income. Here are just a few ways that you can do so from the comfort of your home.
1. Invest in property
Real estate investing is a great way to make extra money, although it could technically be classified as semi-passive income due to the fact you do need to do some work after the initial set-up. By investing in property to rent out, you are not only paying for that mortgage in its entirety but also making some extra money on top. It is a good idea to do plenty of research before buying a property to ensure you get the best return and have a higher chance of regular tenants.
You will need to work to ensure your tenants pay their rent on time and that if there are any problems with the property you get them sorted in a timely fashion. There are companies out there who can sort this out for you and deal with the practical elements of running a property.
2. Buy a blog
There are many blogs out there that people just give up on after a while and put up for sale. The hard work is already done for you here, and as long as you schedule out some posts and set it up with an affiliate scheme or ad service such as Google ad sense, it can regularly bring in income for you.
Blogs tend to sell for about 24 times what they make per month, so it is up to you how much you want to spend, or how big a blog you want to purchase. It is a good idea to invest in one that you have some experience in so you can easily populate the content, or employ someone else to write the features for you.
3. Sell items that you create
It could be that you are an artist, make clothes, handbags, or design jewelry. If you were to sell these online it could be a great way to make some passive income on the side. It can be a lot of work at the beginning when you initially make your pieces (although if you enjoy doing this, it feels like less of a slog) but once you have a good level of stock, you can watch the sales come in as you sit and relax, making you some extra money.
Be sure to take postage costs into account, as well as the amount of time it takes for you to make the items. There are many sites you can sell on such as Amazon, eBay, and Etsy, but these do take a fee from you. If you can create your own website and sell from there it is a good idea as you won’t have to pay fees, but you might have a harder time getting noticed. It is an idea to have a marketing plan or invest in someone to help get your website ranking.
4. Write a book
If you are a budding author, or simply have a subject you really want to talk about, why not consider writing a book? It could be that you write a fiction story, or it could be that you write an educational e-book, whichever you choose, it is a great way to bring in some passive income. While there is a lot of work and research upfront, once the book is written it becomes a venture that is entirely passive. You could put the book onto the Kindle store and earn money from the downloads, or try and sell it to a publisher who will pay you royalties. Be sure to put the hard work in at the beginning and you are sure to soon reap the rewards.
5. Create an app
Apps are one of the most popular things out there and can be a great source of passive income for you. Every person you speak to nowadays is likely to have a smartphone, so why not create something they can use on it. The idea behind an app is to make a person’s life that little bit easier, so when it comes to brainstorming your ideas, think of how you can do just that. Have a look at apps that are already out there and if you have a similar idea to someone, think of how you can make it even better.
Creative and fresh ideas are the best way to go about it and if you can come up with something new, there is a chance that you could make a lot of money from it. If the tech side of things has you put off, there are a multitude of tech companies out there that can build, design, and create the app for you from your idea or initial design.
6. Get cashback and rewards for shopping
Whether you shop online or use a credit card in-store, cashback is a great way to get some passive income. The way cashback works is that every time you shop in certain stores, you get a percentage back. This can vary from 1 or 2% upwards, with some offering one-off rewards and incentives of higher amounts. If you are going to be shopping and spending anyway, why not make some extra money while doing so? You will be surprised at just how quickly the money can rack up.
These are just a few ways that you can make some passive income on the side. Do your research before heading into anything and be prepared to put the hard work in initially to get the best reward at the end. Soon you could find that you are making a second income, or even more than your initial income, just by your passive earnings. Win win!